ASSESSING THE IMPACT OF INTERNAL SOCIAL CAPITAL ON PERFORMANCE OF HOSPITALITY INDUSTRY IN MINNA METROPOLIS

Abstract

Hospitality industry, especially hotel business is declining in Nigeria due to their inability to infuse the culture of social relationship among network members during operation. Hence, this study investigates the impact of internal social capital on performance of hospitality industry in Minna Metropolis, Niger State. Using data generated from structured questionnaire from 68 respondents of Two-stars and Three- stars hotels in Minna, Niger state. Descriptive and inferential statistics were employed for data analysis. The result showed R2 of 71.8% at 0.000 significant for Two- stars hotels, 46.3% at 0.0140 significant for Three- stars hotels and 57.3% at 0.0011 significant for pooled data. The study revealed that information sharing has a significant and positive impact on performance of Two- Stars, Three- Star’s hotels and Pooled data in the study area. The result also revealed that trust has a positive impact on performance of Two- Star’s hotels and pooled data as well as positive and insignificant impact on performance of Three- stars hotels. The result further revealed that shared vision has a negative but insignificant impact on performance of Two- Star’s hotels and pooled data as well as significant and positive impact on performance of Three- stars hotels. The study concluded that information sharing has the strongest impact on performance of hotels in the study area which means that sharing vital information among network members enhances effective and efficient services delivery. It is recommended that management of hotels should imbibe the culture of internal social capital as catalyst that influence employees’ behavior to achieved sustained performance. Government should ensure strict compliance of internal social capital dimensions in developing local content policies by institutional body as well as explore internal social capital as critical tool for business success.